An interesting development in the service provider camp that could have new fallouts for T&M players is outsourcing of non-core activities. It can lead to a scenario where service providers will outsource the management of their network asset inventory or NOCs.

Bharti is already a strong point in the case. In February 2004, it entered into a Rs 1,800-crore deal with Ericsson to outsource the management of its cellular network, AirTel. Ericsson is to provide, manage and maintain the equipment as well as provide quality assurance in AirTel's 13 mobile circles for three years. Only a month later, Bharti signed a similar contract with IBM, for outsourcing Bharti's hardware, software and IT service requirements to the Big Blue.

Do large T&M players like Agilent and Acterna see the honeycomb?

Another opportunity could be the manufacturing and education spaces. It doesn't make much sense for these organizations to own T&M products, as they are not developing or testing the same products always. They are looking at cutting costs significantly and using latest T&M equipments too by exploring options like leasing, rental programs, and outsourcing.